Tuesday, June 18

Is Stripe CBD Payment Processing A Restricted Business?

Is Stripe CBD Payment Processing A Restricted Business

Stripe is a payment processor which acquires digital wallets, credit cards, and various payment methods. Each transaction charges a fee. It is the best online payment for business owners and is used by an individual. CBD, or cannabidiol, is a natural herb from cannabis used by every person in the United States. CBD and hemp-derived products gained popularity on the internet by storm.

Some CBD vendors do their business online and also offline. To sell CBD online, you have to set up a payment processor. To business owners, stripe and CBD payments are restricted. Due to the emergence of different issues, it will not allow some types of industries to process the payment. The problems are due to the regulation and legalization of cannabis.

Everyone will think that there are several online payment services to streamline digital payments, such as stripe. This article will find out whether stripe CBD payment processing is a restricted business.

What is stripe?

Businesspersons can get their payment for products in cash or check. This type of payment is deposited into the bank in the business account. It can accept payments by using stripe from mobile wallets, and they can buy the product without money, which you can pay later. If the customer wants to pay other than cash or check forms, such as using a credit card, it needs a payment processor. It is software to process payments that accept different currencies in person and online.

Is Stripe CBD Payment Processing A Restricted Business?

Yes. Stripe CBD payment processing is a restricted business. According to the striping policy, it will not allow merchant businesses with high risk. Not only does it restrict cannabis products, but also other businesses such as adult entertainment and products, travel business, credit service, gambling, vapes and e-cigarettes, pharmaceuticals, kratom, etc., including undergoing high risks.

Any business having a higher risk than the traditional business cannot use any of the stripe services to pay. If you sell products not included in the restricted business list, you can use any stripe services. If it is CBD, then its service is unavailable to your business.

CBD: High-risk business

CBD contains many health benefits, but it is a high-risk business, and stripe doesn’t like to work with CBD merchants. A high-risk business is a business with incurring chargebacks. In the chargeback process, there is no involvement of the merchant. But in the case of traditional business, the customer can get a refund by dealing with the seller with the complaint. The product bought can be returned to the seller after checking out.

In case of a chargeback, the cannabidiol product buyers can file a dispute with the bank, and then it takes the payment from the merchant’s account without their notice. Then it disburses the full money back into the buyer’s account. In the process of a chargeback, there is no need for the buyer to send back the product they are complaining about.

The problem is that there is much chance of telling lies regarding the reason for their chargeback. Even there is a chance for them to say that they are not responsible for the transaction and that it is fake. Therefore the chargeback process is not accurate, and it may skew to the advantage of the CBD buyers.

CBD buyers can get their amount back without any investigation. The customers will create more issues, and stripe will bring penalties. Therefore, the best solution is to avoid that and refuse to work with such high-risk businesses, which is what stripe has done with CBD.

Why is CBD considered to be a high-risk business?

Now we will see the things which make CBD fall into high risk. It is due to the legalization of cannabis. CBD is not an illegal substance derived from hemp plants. The FDA gives some regulations in using it, and they are unstable, which is a problem for CBD merchants to sell it.

Another problem is related to the experience of the buyers. For example, there may be a chance of having some changes in the legislature of cannabis products today without prior information. And if you have just given a bunch of orders, it may result in a violation. It gives way to buyers having all the right to demand their money back.

CBD sellers can’t give a guarantee about the effects of their product. If the impact of the product does not meet the expectations, then the buyer will automatically file for a chargeback with any fake reason. The other reason for considering CBD as a high risk is that most vendors make buyers sign up for subscriptions. So they can get regular orders and can get them to their doorsteps.

It leads to problems and gives way to the chargebacks. Also, CBD is a volatile industry, and it is not attracted to financial institutions, and the payment processor does not require predictable conditions. All these reasons made the stripe payment processor proceed with the CBD business person.


Ever-changing regulations of CBD legislation made the industry get stuck, and most financial service providers refused the application from the merchant. Stripe is not different, and one cannot criticize this payment processor as it has to look for its safety to operate. But fortunately no need to worry. There are several payment processes available for your CBD sales.

Leave a Reply

Your email address will not be published. Required fields are marked *